SILVERIA PROPERTY, PERU
PAST PRODUCING SILVER MINE WITH OVER 40 MILLION OUNCES PRODUCED
Journey has entered into a Joint Venture Agreement (subject to regulatory approval) with Grenville Gold Corporation to acquire up to a 75% interest in and to certain mining claims comprising the Silveria property located 80 kilometres west-northwest of Lima in the Huarochiri Province of Peru, by funding up to a total of $11,800,000 million in exploration and development expenditures towards advancing the project into production. The mineral titles in the Silveria property total 3959 hectares which includes 2487.23 hectares in mineral titles that have been granted by the Peruvian government, 131 hectares of mineral titles won by auction and 1330.76 hectares of mineral titles purchased. The Silveria claims encompass the past producing Pacococha, Millotingo, Silveria and Germania mines located in the San Mateo Mining District, Province of Huarochiri, Department of Lima, Peru.
Journey plans to implement a structured exploration program to assess the size potential of the deposit at the Silveria property. The Silveria property is currently permitted to operate a milling facility at 500 tonne/day. Journey plans to purchase and implement a plant to exploit current dumps and mine workings at Silveria.
Numerous underground mine workings exist across the Silveria property, which workings are marked by the presence of drift portals and related rock dumps. The exploited mineralization is contained with vein deposits of the epithermal quartz-adularia, low-sulfidation type. Broad alteration zones are also apparent. There are approximately 33 mineralized veins in the Pacococha mining area, 7 mineralized veins at Germania-Silveria and 2 mineralized veins at Millotingo. Not all the veins appear to have been previously exploited. Field indications, as well as historical geology plans, suggest that additional mineralized veins might exist. The metals with economic potential include gold, silver, copper, lead and zinc.
Numerous mineralized surface rock dumps of various sizes exist across the Silveria project area, especially in the Pacococha and Silveria mining areas. The presence of such material may be explained by the selective nature of vein drift development and stoping activity: individual veins were opened up/explored by means of vein drifting; stoping took place above only those sections of developed vein drift that were deemed to have intersected economic mineralization; and sub-economic material from the developed vein drifts was dumped as waste, either on surface or in mine-out stopes.
The results of a preliminary geological assessment suggest that there exists a potential to expand the available resources and define new resources through structured exploration programs that target potential extensions of known vein structures, potential new vein areas and areas of extensive but untouched alteration and disseminated mineralization.
A total of 34 grab samples of rock have been collected from dumps located down slope of accessible drift portals. The assay results show anomalous to low-grade gold values in all the Pacococha and Germania mine samples, but ore-grade gold values from Millotingo mine. Silver grades are consistently high in all the dump samples, with assays ranging from 3.50 g/t to 2,220 g/t Ag. Base metal values vary between 0.007% and 3.90% Cu, 0.01% and 7.15% PB and 0.07% to 19.70% Zn, with the lowest values reported for the Millotingo samples.
